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Foord International Feeder Fund

CLOSED TO NEW INVESTMENT

For conservative, absolute return-oriented investors in global markets

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INVESTMENT OBJECTIVE

The fund aims to achieve meaningful inflation-beating US$ returns over rolling five-year periods from a conservatively managed portfolio of global investments reflecting Foord's prevailing best investment view.

FOR SOUTH AFRICAN INVESTORS

•    With a moderate risk profile
•    Requiring diversification through investments not available in South Africa
•    Seeking to hedge rand depreciation.

Performance

Returns
Year Fund Return % Benchmark Return % SA Inflation %
2006 (from 01/Mar) 24.9 28.4 5.0
2007 9.2 4.6 8.9
2008 12.6 -19.0 9.5
2009 -6.9 -1.4 6.3
2010 -1.7 -1.6 3.5
2011 19.1 15.9 6.1
2012 16.4 22.3 5.7
2013 42.5 57.7 5.4
2014 8.7 16.3 5.3
2015 36.1 33.3 5.2
2016 -10.5 -3.9 6.8
2017 4.2 10.9 4.7
2018 4.1 6.4 4.5
2019 14.5 25.3 4.0
2020 12.3 22.3 3.1
2021 (to 30/Sep) 3.1 16.3 4.5

Characteristics
Benchmark

To achieve meaningful US inflation-beating ZAR equivalent returns over a full investment cycle.

Time horizon

Longer than three years.

Inception date

1 March 2006

Minimum investment

R50 000 lump sum or R1 000 per month

Significant restrictions

The portfolio may only invest in cash and one other collective investment scheme.

Income distributions

The Foord International Fund, in which the fund invests, does not distribute its income.

Income characteristics

Marginal to zero income yield as the Foord International Fund is a roll-up fund and does not distribute its income.

Portfolio orientation

Fully invested in the Foord International Fund, sub-fund of Foord SICAV, domiciled in Luxembourg.

Risk of loss

Currency volatility means risk of loss in the short term is high. In general, the risk of loss is lower than that of the average foreign equity fund.

Top 10
Security description Asset class Market Portfolio weight %
FMC Corp Equity US 6.9
ETFS Physical Gold Commodity GB 6.4
Nestle Equity CH 5.9
SSE PLC Equity GB 5.9
CVS Health Corp Equity US 4.6
Freeport-McMoran Inc Equity US 4.2
Roche Holding AG Equity CH 3.9
Alphabet Inc Equity US 3.8
Johnson and Johnson Equity US 3.7
Wheaton Precious Metals Corp Equity US 3.6
Commentary

Monthly Commentary – September 2021

  • Developed market equities (-4.2%) feel for the first time in eight months—a likely peak in global growth, increasingly hawkish central banks, the imminent US debt ceiling and potential credit default by China's largest property developer were too much for investors to shrug off when coupled with elevated valuations
  • Emerging market equities (-4.0%) also fell, with Brazilian equities (-13.0%) faltering after the central bank raised the benchmark interest rate for the fifth time this year to combat near double-digit inflation—while investors in Chinese bourses (-5.0%) reflected expectations for slowing growth and a potential credit default by the country’s largest property developer, Evergrande
  • Developed market bond yields, including the US 10-year, rose on worries that rising global inflation may not be as transitory as first believed—while Chairman Powell continues to walk a fine monetary policy line, it is becoming increasingly probable the US Fed will begin its bond tapering program within the next two months and we continue to expect a lift-off in rates sometime in 2022
  • The US dollar advanced strongly against the other majors—with investors now more actively positioning for a moderation of the prevailing accommodative US monetary policy and the subsequent rise in interest rates
  • Precious metals platinum (-4.8%), silver (-10.5%) and gold (-3.3%) moved lower on US dollar strength—with palladium (-22.6%) falling on continued auto production problems
  • Industrial commodities including iron ore (-24.9%) and copper (-6.2%) fell on concerns of a slowdown in Chinese economic growth compounded by Chinese power supply constraintsoil (+7.6%), gas (+87.5%) and coal (+53.4%) rose sharply as alternative fuels capable of enabling Chinese power generation
  • The fund’s US S&P 500 market index hedges contributed the most to fund performance—while leading global copper miner Freeport-McMoran (-10.6%) and US-based gold streamer Wheaton Precious Metals (-16.6%) detracted the most from fund performance
  • The rand (-3.8% vs the US dollar) weakened on broad-based dollar strength and negative emerging market sentiment with investors now more actively positioning for a moderation of the prevailing accommodative US monetary policy and the subsequent rise in interest rates—the currency remains vulnerable as the short-term platinum group metals price terms of trade bonus starts to dissipate
Fees

The standard charge rate is a fixed fee of 0.35% plus VAT. A 1.00% annual fee is levied in the Foord International Fund.

WHAT IF YOU HAD INVESTED WITH US IN THE PAST?


Experience the compounding phenomenon of a sustained, long-term investment with Foord.

Calculate
Currency
Using rand returns of Foord’s best investment view South African funds. ? In calculating the current value of your hypothetical investment, we have applied the returns of Foord Asset Management’s retirement fund track record from 1 January 1990 to 31 March 2008 (gross of fees) combined with the net returns of the Foord Flexible Fund of Funds from 1 April 2008. Any information provided is not intended nor does it constitute financial, tax, legal, investment, or other type of advice, and the suitability or potential value of any information or particular investment source is not guaranteed. Performance may be affected by changes in the market or economic conditions and legal, regulatory and tax requirements. Distributions may be subject to mandatory withholding taxes. Foord does not provide any guarantee either with respect to the capital or the performance return of investments.
Using US dollar returns of Foord’s best investment view global fund. ? In calculating the current value of your investment, we have applied the long-term returns of the Foord International Trust. These returns are calculated net of fees. Past performance is no guarantee of future performance. Foord Asset Management (Singapore) Pte. Limited disclaims any liability for any loss, liability, or damages (whether direct or consequential) of any nature whatsoever that may be suffered as a result of, or which may be attributable, directly or indirectly to the use of or reliance upon the information provided.
Value Today: R0
Annualised Return: 0%
The annualised return is the effective annual percentage return achieved over the term of the investment. Results for an investment term of less than one year should be treated with caution.

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